With the responsibility of owning a business comes the necessity of making sure your business isn’t losing money through the dishonest actions of others. One of the most common ways businesses lose money is through check fraud.

More than $1 billion per year is lost through check fraud, according to the most recent estimates by the American Bankers Association. Check fraud can take on many forms, so as a business owner, it’s important to make sure your business is putting the proper protections in place to avoid fraud.

Checks going out

While it might not be the first method that comes to mind, fraud can be just as easily caused by bad checks leaving your business as fake ones coming in. A few measures you can take to ensure checks connected to your business account are used only for legitimate purposes include:

* Purchase secure business checks with fraud prevention features, such as safety holograms that cannot be photocopied. Check printing companies, such as Deluxe, offer security laser checks containing built-in security features that can be printed from your business computer.

* Talk to your bank about check-matching systems that allow them to verify all the checks coming out of your business to make sure they are legit. Monitor your accounts regularly for suspicious activity.

* If possible, divide accounting duties between employees to ensure a system of checks and balances.

* Prevent tampering when making deposits by using secure business checks that meet Federal Reserve guidelines.

Checks coming in

With increased computer technology, great strides have been made in developing secure checks. At the same time, criminals also have a lot more to work with when making counterfeit checks. Here are a few things you can do to avoid being fleeced by thieves posing as customers:

* Ask for two forms of identification to accompany a personal check. One of those forms should contain a photo.

* Compare signatures and look for inconsistencies.

* Post your check policy clearly so customers know what to expect when it comes time to pay using a check.

If you suspect check fraud, report it immediately and freeze accounts that may have been affected. When fraud is detected immediately, there’s a better chance that you will recover all your losses.